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Sunday, November 8, 
2:28 pm

J. Crew's buzz exemplifies vital IPO factor

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J. Crew's successful IPO may exemplify a necessary key that other pending IPOs need to consider before going forward: buzz. The New York retailer is a well-recognized brand, which may have been a vital factor in driving its stock on Wednesday. The preppy clothing retailer ended its first day of trading on the NYSE up 25% closing at $25.55 a share after pricing at $20 a share. J. Crew isn't the only recent IPO that was driven by buzz. While MasterCard may have stumbled on its first day, overall it has performed well since then. MasterCard benefits from the same name recognition that J. Crew does. The media's attention to ethanol and other biofuels also helped propel ethanol producer Verasun's recent IPO. Keeping the importance of buzz in mind, BusinessWeek has created a list of five IPOs to watch. Of course, only two of the five actually have strong buzz: ethanol producer Hawkeye, and Internet domain register Go Daddy, best known for its racy Super Bowl ads. To further bolster the importance of buzz are two of Wednesday's other IPOs, Omniture and Replidyne, which both had trouble out of the gate. —Matthew Wurtzel

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